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Small differences in growth rates can create large differences in income levels because of:

A. specialization.
B. compounding.
C. the division of labor.
D. Say's Law.

Respuesta :

IanSalvatore

Answer:

Answer is option B, i.e. compounding.

Explanation:

Compounding can be understood as an ability of an organization to generate earnings from previous given income. This leads to small growth compared to the previous one and therefore, leads to large differences in income.    

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